"The tax changes finally agreed by the Senate today are great news for hundreds of thousands of small and medium-sized businesses, their employees and the broader Australian community," Australian Industry Group Chief Executive, Innes Willox, said today.

"The lower tax rates for unincorporated businesses and the reduction in the company tax rate for businesses with annual turnover of less than $50 million will stimulate new investment and additional employment in this important part of the business community. It is particularly timely as it comes at a time when investment levels are disappointing and employment is struggling to keep pace with the growing labour force.

"While we are disappointed the Senate blocked the Government's full tax reform package that included a reduction in the tax rate for all companies, we appreciate this further step did not have the community support required to convince the Parliament to agree to it. A more competitive tax system nevertheless remains a critical element in the efforts needed to build a stronger and more successful economy that is capable of supporting the broader aspirations of the Australian community.

"We urge the Government and other proponents of these measures not to shelve the broader tax reform agenda but to be open to its re-prosecution. This will need to be done in a way that addresses the scepticism about its merits and its fairness and that gathers community support for the stronger economy upon which broader social progress can be built," Mr Willox said.